Relying on "lithium" to fight a turnaround, the concept of lithium ore, the most bullish stock report, has increased 64 times in the past three years, but there is no institutional research report to cover it.

After trading on August 11, Jiangte Motor disclosed its semi-annual report, realizing a net profit of 181 million yuan, compared with a profit of 2.77 million yuan in the same period last year (with a small base), an increase of more than 64 times over the same period last year.

The company has previously issued a performance forecast, which is expected to make a profit of 175 million yuan to 185 million yuan in the first half, an increase of 6215% and 6576% over the same period last year. In other words, the company's actual net profit in the first half of the year is close to the forecast limit. According to the semi-annual report, the company's main financial indicators have improved greatly, and the main reason for the substantial increase in profits is the substantial growth in lithium carbonate business.

Statistics show that among the companies with the concept of "lithium mine", Jiangte Motor ranks first, with an increase of 526% so far this year, compared with Salt Lake shares (272%) and Mount Qomolangma in Tibet (262%). The increase nearly doubled during the year.

However, there is no institutional interest behind the sharp rise in share prices, and there has been no brokerage research coverage in the past three years.

Yichun has the largest lithium porcelain stone reserves in Asia, and the company has 2 mining rights and 5 exploration rights in Yichun area, holding or controlling more than 100 million tons of lithium ore resources. The subsidiary Silver Lithium New Energy has mastered the technology of extracting lithium from lithium mica with high efficiency and low cost with independent intellectual property rights. The company has four production lines for the preparation of lithium carbonate and lithium hydroxide (under construction) from lithium mica and spodumene, with an annual production capacity of more than 30,000 tons, reaching the domestic leading level and obvious advantages in scale.

The company's lithium carbonate business expands production and sales by giving full play to its own rich lithium ore resources, promoting "exploration and conversion" work, relying on the advantages of the scale of lithium carbonate production lines, and through technical transformation and process optimization of production lines.

According to the semi-annual report, the proportion of the company's lithium carbonate business revenue increased rapidly to 32% in the first half of 2021, and the amount increased to 440 million yuan, a year-on-year increase of more than 2.5 times.

Moreover, the gross profit margin of the company's lithium carbonate business increased by more than 80% compared with the same period last year, significantly higher than the traditional motor and servo motor business where gross margin declined.

The motor industry is the company's original leading industry. During the reporting period, the company consolidated and expanded its leading position in the market segment of construction motor, crane metallurgical motor, wind power supporting motor and servo motor.